The government has decided to review and terminate contracts with 15 independent power producer (IPP) companies in an effort to provide relief to the public burdened by high electricity costs, Express News reported.
The government has initiated relief measures and a task force has finalised the framework for this purpose, the news outlet reported while citing sources within the government.
After the decision, the contracts with six IPPs established in the 1990s would be “immediately terminated” while the agreements with nine other companies would be phased out gradually.
Companies whose contracts will be terminated without extension include Gul Ahmed Energy Limited, Kohinoor Energy, Liberty Power Project, Tapal Energy Limited, Attock Generation, and KAPCO. There would not be any extension in agreements signed with them.
Moreover, the agreements with Lal Pir, Pakgen, Fauji Kabirwala Power, Habibullah Coastal, Japan Power Generation, Saba Power, HUBCO, Southern Electric Power, and Rousch Power would be phased out over the next three to five years.
They added that the agreements with the IPPs installed during the 1990s would also be gradually terminated over the next three to five years.
Meanwhile, a framework has been developed for consumers with more than 201 units, which includes a decision to change the policy of keeping such consumers in the same slab for six months.
Special slabs would be maintained for consumers with more than 201 units. Consideration was being given to setting a rate of Rs26 per unit for electricity consumers with more than 201 units.
